22 May 2008
Angela Eagle launches the Government Banking Service
Exchequer Secretary to the Treasury, Angela Eagle MP, has launched the new Government Banking Service, which brings together banking services from across Government to create a customer-focused, cost-efficient banking service.
The Government Banking Service (GBS) will take over as the banking service provider for over 900 public sector customers of the Office of the Paymaster General, and brings together a significant part of the banking operations of HM Revenue & Customs (HMRC) and National Savings & Investment (NS&I). HMRC and NS&I will receive their banking services through the GBS' newly appointed banking suppliers - the Royal Bank of Scotland and Citibank.
Angela Eagle welcomed the creation of the Government Banking Service:
"I'm very pleased that the GBS is now a reality. Bringing together our banking services is an opportunity to develop a respected centre of banking excellence with reduced banking costs and top quality banking services.
"The GBS has a vision of becoming the provider of choice for public sector banking services; and will look to continually improve, and help its customers to provide a better service to their own customers, while saving taxpayers money."
The GBS became operational from Monday 19 May, as it incorporated existing Office of the Paymaster General customers and suppliers. HMRC and NS&I will move to the new suppliers on a phased basis over the next two years to 2010.
Notes for editors
1. In 2004 the Chancellor's Departments Review of Banking recommended steps to bring together a significant part of the Treasury, HMRC and National Savings & Investments' banking operations. The GBS is the result of this.
2. The Exchequer Secretary announced in March 2008 that Citibank and Royal Bank of Scotland had won contracts to provide clearing bank services currently provided by the Bank of England. The contracts are for five years with the option to extend on an annual basis for a further two years. In July 2004 the Bank announced that it would withdraw from the provision of retail banking and clearing services to its commercial customers.
3. The GBS will process around 10 million payable orders; 100,000 CHAPS (electronic bank-to-bank same-day payments) payments and receipts; and over 40 million BACS (automated) payments every year.
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